I think the actual concern, not well expressed in the blog post, is the fact that node and vscode server are installed on, for instance, a prod machine that (probably) should be very tightly controlled in terms of what software is installed and running. You don't want to unwittingly add to the attack surface
Fair enough, but running VSCode on a prod machine is also bananas.
This should be covered by not giving developers SSH shell or equivalent access to production machines in the first place, or at the very least to have measures in place (ACLs, quotas, etc.) to strictly limit what they are able to do from the shell.